The Good, The Bad, & The Ugly [Charts]

The Good [Charts], The Bad [Charts], and the Ugly [Charts]

The good news is so far we’ve seen strong support for BTC around $30k, but the latest price drop, rebound, and subsequent roll over puts bitcoin in a very precarious position; a major head and shoulders pattern has developed and may spell more short-term pain if BTC dives below $30k. The traditional rule of thumb would imply a target price as low as $10k if BTC were to make a clear break below the neckline, but technical analysis is only one piece of the bigger puzzle, especially when it comes to an asset with such a diehard support base and a growing acceptance among traditional investors. Having said that, an extended move below $30k could spell more short-term pain for hodlers; this price level also coincides with BTC’s 50-week moving average.